Final answer:
The correct answer is A) government, indicating that investors and entrepreneurs, not the government, benefit from the protection of property rights. This is consistent with the principles of a market-oriented economy where private parties prosper from their investments and efforts.
Step-by-step explanation:
Consistent protection of property rights means that investors and entrepreneurs, not the government, will directly prosper from their hard work. The correct answer to the student's question is A) government. This is because when property rights are upheld, individuals and firms have the autonomy to operate their businesses and use their properties as they see fit, which in turn allows them to benefit from their own investments and efforts. The concept of property rights is fundamental to a free enterprise system, where the government's role is minimized in favor of market forces and private property ownership.
Friedman's theory primarily supports the interests of shareholders, whereas stakeholder theory extends the area of consideration to include a wider group composed of anyone who may be affected by a business's operations. The fundamental belief in a market-oriented economy suggests that firms are in a better position to know how to optimize their operations over the government, thus they should be the ones to benefit from their actions if they lead to efficient production and customer attraction.